Monopoly and the Distribution of Wealth: A Reappraisal

Abstract

In a recent article William Comanor and Robert Smiley [1975] attempt assessment of the impact of multi-industry monopoly on the personal distribution of wealth in the United States. The conclusions of their study are striking: possibly one-half of existing wealth holdings by the richest 2.4 percent of American households is due entirely to capitalized monopoly gains. Yet the methods by which this and similar estimates are obtained suffer from certain difficulties: first with regard to the theoretical framework implicit in the estimation procedure, and second with regard to several parameters used in the application of this framework. The following two sections, respectively, present these difficulties.